CESTAT President S N Jha appointed Chairman of Bihar Human Rights Commission (See 'DDT')

Duty on DTA clearances from EOU – Education Cess twice or thrice? (See 'DDT')

13th Finance Commission holds parleys with Goa;

Karnataka High Court CJ Justice Cyriac Joseph is elevated to Supreme Court;

Field Marshal Manekshaw passes away at 94; PM condoles his death;

SBI hikes PLR by half a per cent; Others to follow today;

UPA Govt goes for gubernatorial reshuffle: Bihar Governor R S Gavai goes to Kerala and Mr R L Bhatia moves from Kerala to Bihar; Shiv Charan Mathur gets Assam + Balmiki Prasad Singh goes to Sikkim & Ranjit Shekhar Mooshahary is new Governor of Meghalaya;

ddt 27 june.pdf

Service Tax – Government exempts supply of transport vehicles to GTA;

mbuzz749.pdf

Wind Energy: India ranks 4th in World;

mbuzz748.pdf

Broadband subscribers-bases surpasses 40-lakh mark; 8.48 mn new tele connections added in May, 2008;

mbuzz747.pdf

Govt gives nod to OVL's proposed investment in Trinidad & Tobago and Brazil;

NOTIFICATION

it08not073.pdf

CBDT amends jurisdiction of CIT, Patiala;

CASE LAWS

2008-TIOL-282-ITAT-PUNE.pdf + tp story.pdf

Egain Communication Pvt Ltd Vs ITO, Pune ( Dated : June 10, 2008 )

Income Tax - Transfer Pricing - Assessee is a wholly owned subsidiary of US-based company - provides software developing service to parent company which compensates it with cost plus 5% profit margin - AO disagrees and refers the case to TPO - Adjustments made - CIT(A) agrees with the AO - Revenue not justified in selecting oversized comparables with abnormal profit margins for adjustments

While comparing the controlled and uncontrolled transactions under the Transactional Net Margin Method (TNMM), the differences having tangible bearing on costs, price or profit are to be given weightage to make reasonable adjustment to elimiante them.

Revenue should opt for robust and comprehensive FAR analysis for choosing comparable companies and if need be, the necessary adjustements can also be made in the operating profits of the comparable companies. : PUNE ITAT;

2008-TIOL-281-ITAT-MUM.pdf

Advance Construction Co Pvt Ltd Vs ACIT, Mumbai ( Dated : February 22, 2008 )

Income Tax - dividend income receipt - exemption u/s 10(33) - Assessee asked to furnish details of expenses incurred for earning dividend income - reply - dividend earned from tax free bonds and the investment made some years ago out of surplus funds - no expenses incurred for earning dividend - AO notices interest bearing loans and interest paid thereon - AO makes proportionate disallowance - CIT(A) holds that since the assessee could not satisfy the AO that the interest bearing funds were not utilized for earning such exempted income, section 14A was applied - Held, the word "incurred" refers to the factual spending of the expenditure in relation to the exempt income and does not refer to a deemed spending or assumed spending for the purpose - Assessee's Appeal allowed : MUMBAI ITAT;

2008-TIOL-280-ITAT-DEL.pdf

WTO, Mazuffarnagar Vs M/s Virendra Verma, HUF ( Dated : January 1, 2008 )

Income Tax - A.O. during assessment proceedings notices that the assessees were having wealth beyond taxable limit but no returns were being filed - notices u/s 17 - assessee pleads that some of the properties were received on family settlement and belonged to the HUF - AO, however, assesses properties in the name of the assessee in individual capacity and protective assessments were also made in case of HUF - CWT(A) holds that some of the properties belonged to HUF as claimed by the assessee and also modified the rate of valuation of the properties - Once a property is assessed in the hands of HUF, the same cannot be included in the hands of the assessee in individual capacity - CWT(A) order upheld - Revenue's appeal dismissed : DELHI ITAT;

2008-TIOL-279-ITAT-DEL.pdf

ITO, New Delhi Vs M/s Super Refrigeration India (P) Limited ( Dated : January 4, 2008 )

Income Tax - Assessee engaged in the trading of industrial valves - files return claiming deduction on account of commission paid to the agents -  also declares loss - AO  restricts the claim to certain extent on the ground that (i) Most of the agents are persons covered under the provisions of Section 40A(2)(b). (ii) Commission has been paid at various rates ranging from 1% to 25%. (iii) No written agreement has been entered into for payment of commission. (iv) Commission has been paid on the list price of the products whereas goods have been sold at substantial discount – CIT(A) deletes the disallowance - most of the commission agents were not the persons covered under the provisions of Section 40A(2)(b) and this position has not been disputed by the Revenue as the burden is on the AO to establish on evidence that the commission paid by the assessee is excessive and unreasonable and having failed to discharge the same, the impugned disallowance made by him not sustainable - Revenue appeal dismissed. : DELHI ITAT;

CENTRAL EXCISE SECTION

2008-TIOL-324-HC-MAD-CX.pdf + prosecution story.pdf

A Jayagipal Vs ACCE (Legal), Madurai (Dated: May 14, 2008 )

Prosecution in Central Excise case – permissible even when demand dropped by C ommissioner on limitation - Board's instructions on monetary limits not binding on courts : MADRAS HIGH COURT;

2008-TIOL-1006-CESTAT-DEL.pdf + dujodwala story.pdf

M/s Dujodwala Rasins & Terpenes Ltd Vs CCE, Jalandhar (Dated : May 1, 2008)

Sr. Executive leaving office for personal engagements - Since Appellant is a Public Limited Company, any other authorized person could have taken steps for the purpose of filing appeal – Appeal rightly rejected as being time barred . :DELHI CESTAT;

2008-TIOL-1005-CESTAT-MAD.pdf

M/s Anugraha Valve Castings Ltd Vs CCE, Coimbatore (Dated : April 4, 2008)

Central Excise – Stay /dispensation of pre-deposit – cenvat credit on capital goods and depreciation also availed – the appellants contend that the claim of depreciation under Income Tax has been abandoned - stay granted. :CHENNAI CESTAT;

2008-TIOL-1004-CESTAT-DEL.pdf

M/s Punjab Stainless Steels Industries Vs CCE, Delhi-I (Dated : January 25, 2008)

Central Excise – Cenvat Credit on inputs used the manufacture of export goods which are exempted – input credit / rebate can not be denied on the ground that the export goods are exempted – Rule 6 provides that the provisions of the same are not applicable for the goods exported. :DELHI CESTAT;

SERVICE TAX SECTION

2008-TIOL-1002-CESTAT-MAD.pdf + stgst.pdf

M/s BSNL Vs CCE, Salem (Dated: June 18,2008)

Non registration as a first stage dealer: The CENVAT credit in question has been denied on a technical ground. It is not in dispute that the capital goods were duty-paid; that credit of that duty was taken by the SSA Salem by satisfying the further condition the capital goods was to be used in the rendering of output service. It is settled law that a substantive benefit cannot be denied on a procedural or technical ground where the beneficiary has satisfied the sine qua non for the benefit. Accordingly, there will be waiver of predeposit and stay of recovery in the said appeal.

Capital goods installed in any SSA anywhere in India are involved in M/s. BSNL's activity of rendering the taxable services to subscribers all over the country: The counsel submitted that, technologically, the capital goods should be held to have been used in SSA Salem also. He elaborated the point by submitting that the capital goods installed in any SSA anywhere in India are involved in M/s. BSNL's activity of rendering the taxable services to subscribers all over the country and, therefore, the capital goods on which SSA Salem took CENVAT credit should be held to have been used by that SSA also.

Some oiling of the joints : the arguments of the counsel, which are technology based, merit consideration. It is noted that the learned Commissioner chose to go literally by expressions like ‘factory of production' figuring in the relevant CENVAT Credit Rules. Prima facie, we are of the view that the rules have not been construed in a manner which suits the technological features of the taxable services. If some oiling of the joints is done, an impasse, which might arise in the application of rules to real facts at hand, can be got over. In this view of the matter, we grant waiver of predeposit and stay of recovery in respect of the dues adjudged by the Commissioner and challenged in Appeal. :CHENNAI CESTAT;

2008-TIOL-1001-CESTAT-DEL.pdf

ST - Cargo Handling Service - Assessee pleads it supplies only labour for loading of cement bags and shifting of steam coal from power plant to coal plant - Pre-deposit ordered :DELHI CESTAT;

CUSTOMS SECTION

NOTIFICATION

cnt08_080.pdf

Govt allows M/s Bharati Shipyard to use Dhabol Port for export/import of goods for cargo ships & barges;

cnt08_079.pdf

Customs Exchange rate for imports goods & export goods for July;

dgft08not016.pdf

DGFT amends ITC classifications for shellac and gum;

dgft08pn033.pdf

SION rate of Handknotted /Woven/Tufted Woollen Carpets, Indo-Tibetan Carpets, Hand made Wool Druggets amended;

CASE LAWS

2008-TIOL-1003-CESTAT-DEL.pdf

M/s Havell's India Ltd Vs CC ,(Export), New Delhi (Dated : February 8, 2008)

Customs – stay / dispensation of pre-deposit - classification – the impugned goods prima facie do not fall under Chapter heading 85393110 as CFL lamps – the appellant has made out a strong prima facie case for full waiver of pre-deposit. :DELHI CESTAT;